Question

Discuss the role of compensation in motivation and employee satisfaction.

Answer 1

The role of compensation in motivation and employee satisfaction is so positive. Better the compensation, better would be employee satisfaction. Job performance and motivation could be enhanced by the management through compensation. It is the reward given by the organization to the employees for their productive contribution.
Compensation is the return given by the entity to the employee's effort to achieve organizational goals. These compensations are the most crucial reason for every employee to get motivated and satisfied. The size of the compensation would reflect in employee's performance.